Sector-Specific Investing: Uncovering the Best Mutual Funds for Technology, Healthcare, and More

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In the ever-changing finance landscape, where market fluctuations can be unpredictable, one principle remains dependable: investing is the pursuit of multiplying wealth. For individuals pursuing financial well-being and stability, mutual funds have arisen as a promising option.

Finding the best mutual funds for long-term growth is an important step that has to be taken before you invest in any mutual fund, as it is a crucial decision on which your entire financial planning depends.

Mutual funds serve as a captivating entry point into the world of investments and a significant stepping stone towards realizing one’s financial goals.

What is a mutual fund?

Mutual funds are investment windows that enable you to invest in different options and will allow you to diversify your investment pool among the best performing mutual funds. A group collects funds from a bunch of investors with a shared investment goal and divides these funds into stocks, bonds, money market instruments, or other securities.

The earnings and profits generated from this diversified investment are distributed among the investors in proportion to their contributions after subtracting the relevant costs and charges.

Why invest in mutual funds?

●     Portfolio Diversification

Diversifying your portfolio involves spreading investments among various assets, creating a foolproof portfolio that effectively reduces risks across sectors. This approach consists of allocating funds to assets that suit your risk tolerance.

  • Reinvestment facility

They present significant potential for long-term higher returns by allowing you to invest in diverse sectors and industries. Reinvesting gains in the best mutual funds further increases potential returns over time.

  • Liquidity

If you decide to liquidate your investment, funds will typically reach your bank account within a few days. Some mutual funds have the option of expediting disbursements through “instant redemption,” enabling the transfer of funds to your bank account on the same day.

  • Tax Benefits

The Indian government incentivizes mutual fund investments by offering tax benefits. For example, contributions to Equity-Linked Saving Schemes (ELSS) qualify for tax deductions under Section 80C of the Income Tax Act.

  • Well-Regulated

The Securities and Exchange Board of India (SEBI) is the regulatory authority for capital markets, which oversees and regulates all mutual funds. This regulation ensures that all mutual fund management companies comply with SEBI’s regulatory directives, safeguarding investors’ interests.

Which are the best mutual funds for long-term growth?

1.   Quant small cap fund- equity fund

These mutual funds invest in stock markets where stocks are selected by a team of professionals who try to deliver maximum returns from your investments while keeping risk in control. This mutual fund provides a return of 29.36%

2.   The Aditya Birla Sun Life medium-term plan- debt fund

It is a mutual fund option that invests in fixed-income assets like corporate and government bonds, debt securities and money market instruments. This particular fund gives a return of 8.91%.

3.   Quant multi-asset fund growth- hybrid fund

It is a combination of equity and debt investments, one of the best mutual funds, designed to meet the investment objective of the respective scheme. This fund has a return rate of 22.61%.

4.   Quant tax plan- tax saver fund

This helps investors save tax under Section 80C of the Income Tax Act 1961. Investments in ELSS have to be in a lock-in period of 3 years and qualify for a tax deduction of up to Rs 1.5 lakh. This fund has a return rate of around 26.97%.

How do you invest in mutual funds?

Recently, I wanted to invest my capital in a vehicle that has high returns. I was told to invest in mutual funds as they allow you to earn higher returns, along with trying to guard against the risk involved. My sister suggested that I use the Bajaj Finserv app to invest in the best performing mutual funds stated above for all my investment needs.

Go through the steps written below:

  1. Download the application on your device. It is readily available on both the Play Store and the App Store.
  2. Sign up with your mobile number.
  3. Find Mutual funds under the Investment Bazaar section.
  4. Proceed as per your requirement.


So, if you plan to invest your underlying capital, mutual funds are the way to go about it for good reasons! It is one of the investment options that safeguard your amount along with providing higher returns as compared to other investment options.

They are reliable and allow you to divide your funds equally into differently performing assets, reducing risks and enhancing your investment plans.

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